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CS FOR HOUSE BILL NO. 381(RES)
IN THE LEGISLATURE OF THE STATE OF ALASKA
THIRTY-FOURTH LEGISLATURE - SECOND SESSION
BY THE HOUSE RESOURCES COMMITTEE
Offered: 5/8/26
Referred: Finance
Sponsor(s): HOUSE RULES COMMITTEE BY REQUEST OF THE GOVERNOR
A BILL
FOR AN ACT ENTITLED
"An Act relating to the taxation of certain natural gas project property and related 1
facilities; relating to local contributions for public school funding; relating to municipal 2
property taxes and equity ownership agreements; relating to revenue from a North 3
Slope natural gas project; relating to revenue received from the state's royalty gas; 4
relating to an alternative volumetric tax on natural gas throughput; relating to 5
agreements related to a natural gas project and a designated community impact fund; 6
and providing for an effective date." 7
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 8
* Section 1. The uncodified law of the State of Alaska is amended by adding a new section 9
to read: 10
LEGISLATIVE FINDINGS. The legislature finds that the tax treatment in this Act is 11
necessary to advance a major natural gas project and to ensure that 12
(1) the project maximizes the benefit to the state by ensuring direct and 13
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affordable access to natural gas to the residents of the state; and 1
(2) communities affected by the natural gas project are protected from the 2
negative effects of the project. 3
* Sec. 2. AS 14.17.510 is amended by adding a new subsection to read: 4
(d) In this section, the full and true value of the taxable real and personal 5
property does not include property subject to the alternative volumetric tax levied 6
under AS 43.59.020. 7
* Sec. 3. AS 14.17.990(6) is amended to read: 8
(6) "local contribution" 9
(A) means appropriations and the value of in-kind services 10
made by a district; 11
(B) does not include 12
(i) tax revenue resulting from property taxes on a 13
gas treatment plant, carbon capture facility, or liquefied natural 14
gas facility related to a natural gas project, as defined in 15
AS 43.59.100; 16
(ii) appropriations of revenue received by a 17
municipality under AS 43.59.040; 18
* Sec. 4. AS 29.45.050 is amended by adding a new subsection to read: 19
(aa) A municipality may by ordinance partially or totally exempt from 20
taxation or provide an alternate tax rate for all or some property related to a natural gas 21
project for a designated period. A municipality may by ordinance permit deferral of 22
payment of taxes on a natural gas project for a designated period. A municipality may 23
apply an exemption or deferral under this subsection to taxes levied for special 24
services in a service area that is supervised by an elected service area board under 25
AS 29.35.460 unless the elected service area board objects to the exemption or 26
deferral by resolution adopted not later than 60 days after the effective date of the 27
municipal ordinance enacting the tax exemption or deferral. A municipality may adopt 28
an ordinance under this subsection only if, before it is adopted, copies of the proposed 29
ordinance made available at a public hearing on it contain written notice that the 30
ordinance, if adopted, may be repealed by the voters through referendum. An 31
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ordinance adopted under this subsection must include specific eligibility requirements 1
and require a written application for each exemption or deferral. In this subsection, 2
"natural gas project" has the meaning given in AS 43.59.100. 3
* Sec. 5. AS 29.45 is amended by adding a new section to read: 4
Sec. 29.45.085. Alternative volumetric tax election; equity option. (a) A 5
municipality may by ordinance elect to exempt from municipal taxation under 6
AS 29.45.010 - 29.45.560 a gas treatment plant, carbon capture facility, or liquefied 7
natural gas plant. 8
(b) If a municipality by ordinance elects to exempt property from tax under (a) 9
of this section, the municipality may by ordinance elect to enter into an agreement 10
with the owner of the gas treatment plant, carbon capture facility, or liquefied natural 11
gas plant to receive an equity interest in the gas treatment plant, carbon capture 12
facility, or liquefied natural gas plant. 13
(c) An equity interest accrued under (b) of this section 14
(1) may be structured as an ownership interest, revenue interest, or 15
other equivalent participation; 16
(2) must be in proportion to the value determined as if the property 17
were subject to municipal property tax; 18
(3) must entitle the municipality to distributions, participation, voting 19
and governance rights, contractual rights, and options, consistent with other equity 20
holders. 21
(d) An equity interest accrued under this section is exempt from the limitations 22
in AS 29.45.080(c) - (f) and 29.45.090. 23
(e) In this section, "carbon capture facility," "gas treatment plant," and 24
"liquefied natural gas plant" mean a "carbon capture facility," "gas treatment plant," or 25
"liquefied natural gas plant" associated with a natural gas project, as defined in 26
AS 43.59.100. 27
* Sec. 6. AS 37.14 is amended by adding a new section to read: 28
Article 12. Constitutional Education Fund. 29
Sec. 37.14.900. Alaska education fund. (a) Under art. IX, sec. 18, 30
Constitution of the State of Alaska, the Alaska education fund is established as a 31
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separate fund in the state treasury. 1
(b) Notwithstanding any other provision of law, the Alaska education fund 2
consists of all revenue received by the state associated with a North Slope natural gas 3
project that remains after 4
(1) the payment to the Alaska permanent fund under AS 37.13.010; 5
(2) the payments to municipalities, reserves, and communities in the 6
unorganized borough under AS 43.59.040; and 7
(3) the payment to the renewable energy grant fund under 8
AS 42.45.045(m). 9
(c) The commissioner of revenue is the fiduciary of the Alaska education 10
fund. The commissioner of revenue shall manage and invest the fund assets as 11
provided in AS 37.10.071. 12
(d) In this section, "North Slope natural gas project" has the meaning given to 13
"natural gas project" in AS 43.59.100. 14
* Sec. 7. AS 42.45.045(b) is amended to read: 15
(b) The authority shall administer the fund as a fund distinct from other funds 16
of the authority. The fund consists of 17
(1) money appropriated to the fund by the legislature, including 18
appropriations made under (m) of this section, to provide grants for certain energy 19
projects determined by the legislature; 20
(2) gifts, bequests, contributions from other sources, and federal 21
money; 22
(3) interest earned on the fund balance; and 23
(4) investments to be managed by the Department of Revenue, which 24
shall be the fiduciary of the fund under AS 37.10.071. 25
* Sec. 8. AS 42.45.045 is amended by adding a new subsection to read: 26
(m) Each year, the legislature may appropriate to the fund 20 percent of the 27
revenue received from the state's royalty gas transported in an Alaska liquefied natural 28
gas project that remains after the payment to the Alaska permanent fund under 29
AS 37.13.010. In this subsection, "Alaska liquefied natural gas project" has the 30
meaning given in AS 31.25.390. 31
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* Sec. 9. AS 43.56.010(a) is amended to read: 1
(a) Except as provided in AS 43.59.020, an [AN] annual tax of 20 mills is 2
levied each tax year beginning January 1, 1974, on the full and true value of taxable 3
property taxable under this chapter. 4
* Sec. 10. AS 43.56.010(a), as amended by sec. 9 of this Act, is amended to read: 5
(a) An [EXCEPT AS PROVIDED IN AS 43.59.020, AN] annual tax of 20 6
mills is levied each tax year beginning January 1, 1974, on the full and true value of 7
taxable property taxable under this chapter. 8
* Sec. 11. AS 43.56.010(b) is amended to read: 9
(b) A municipality may levy and collect a tax under AS 29.45.080 at the rate 10
of taxation that applies to other property taxed by the municipality. The tax shall be 11
levied at a rate not [NO] higher than the rate applicable to other property taxable by 12
the municipality. Except as provided in this section and AS 29.45.085, a [A] 13
municipality may not exempt from taxation property authorized to be taxed under this 14
chapter. Exemptions shall be limited to those in AS 29.45.030, 29.45.050, and 15
AS 43.56.020. 16
* Sec. 12. AS 43.56.010(b), as amended by sec. 11 of this Act, is amended to read: 17
(b) A municipality may levy and collect a tax under AS 29.45.080 at the rate 18
of taxation that applies to other property taxed by the municipality. The tax shall be 19
levied at a rate not higher than the rate applicable to other property taxable by the 20
municipality. Except as provided in this section [AND AS 29.45.085], a municipality 21
may not exempt from taxation property authorized to be taxed under this chapter. 22
Exemptions shall be limited to those in AS 29.45.030, 29.45.050, and AS 43.56.020. 23
* Sec. 13. AS 43.56.020(d) is amended to read: 24
(d) Taxable property subject to the volumetric tax imposed under 25
AS 43.59.020 [OF A NATURAL GAS PIPELINE PROJECT OWNED OR 26
FINANCED BY THE ALASKA GASLINE DEVELOPMENT CORPORATION OR 27
A JOINT VENTURE, PARTNERSHIP, OR OTHER ENTITY THAT INCLUDES 28
THE ALASKA GASLINE DEVELOPMENT CORPORATION] is exempt from state 29
taxes levied or authorized under AS 43.56.010(a) and municipal taxes levied or 30
authorized under AS 43.56.010(b) [BEFORE THE COMMENCEMENT OF 31
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COMMERCIAL OPERATIONS OF THAT NATURAL GAS PIPELINE PROJECT. 1
IN THIS SUBSECTION, "COMMENCEMENT OF COMMERCIAL 2
OPERATIONS" MEANS THE FIRST FLOW OF NATURAL GAS IN THE 3
PROJECT THAT GENERATES REVENUE TO THE OWNERS OF THE 4
NATURAL GAS PIPELINE PROJECT]. 5
* Sec. 14. AS 43.56.020(d), as amended by sec. 13 of this Act, is amended to read: 6
(d) Taxable property of a natural gas pipeline project owned or financed 7
by the Alaska Gasline Development Corporation or a joint venture, partnership, 8
or other entity that includes the Alaska Gasline Development Corporation 9
[SUBJECT TO THE VOLUMETRIC TAX IMPOSED UNDER AS 43.59.020] is 10
exempt from state taxes levied or authorized under AS 43.56.010(a) and municipal 11
taxes levied or authorized under AS 43.56.010(b) before the commencement of 12
commercial operations of that natural gas pipeline project. In this subsection, 13
"commencement of commercial operations" means the first flow of natural gas in 14
the project that generates revenue to the owners of the natural gas pipeline 15
project. 16
* Sec. 15. AS 43.56.210(5) is amended to read: 17
(5) "taxable property" 18
(A) means real and tangible personal property used or 19
committed by contract or other agreement for use within this state primarily in 20
the exploration for, production of, or pipeline transportation of gas or unrefined 21
oil (except for property used solely for the retail distribution or liquefaction of 22
natural gas), or in the operation or maintenance of facilities used in the 23
exploration for, production of, or pipeline transportation of gas or unrefined 24
oil; "taxable property" includes 25
(i) machinery, appliances, supplies, and equipment; 26
(ii) drilling rigs, wells (whether producing or not), 27
gathering lines and transmission lines, pumping stations, compressor 28
stations, power plants, topping plants, and processing units; 29
(iii) roads, tank farms, tanker terminals, docks and other 30
port facilities, and air strips; 31
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(iv) aircraft and motor vehicles owned by a person 1
whose principal business in the state is the exploration for, production 2
of, or pipeline transportation of gas or unrefined oil and whose 3
operation of the aircraft or motor vehicle directly relates to the conduct 4
of that business; 5
(v) maintenance equipment and facilities, and 6
maintenance camps and other related facilities; and 7
(vi) communications facilities owned by a person 8
whose principal business in the state is the exploration for, production 9
of, or pipeline transportation of gas or unrefined oil and whose 10
operation of the communications facilities directly relates to the 11
conduct of that business; 12
(B) does not include 13
(i) permanent residences; 14
(ii) office buildings requiring substantial local 15
government services; 16
(iii) oil and gas pipeline systems owned and operated by 17
a public utility that is certificated under AS 42.05.221 and is regulated 18
by the Regulatory Commission of Alaska; 19
(iv) aircraft and motor vehicles, except aircraft and 20
motor vehicles taxable under (A)(iv) of this paragraph; [AND] 21
(v) communications facilities, except communications 22
facilities taxable under (A)(vi) of this paragraph; and 23
(vi) property related to a gas treatment plant, as 24
defined in AS 43.59.100; 25
* Sec. 16. AS 43 is amended by adding a new chapter to read: 26
Chapter 59. Natural Gas Project Volumetric Tax. 27
Sec. 43.59.020. Imposition of alternative volumetric tax. (a) The owner of 28
property subject to tax under this section shall pay an alternative volumetric tax on the 29
throughput of the property. The alternative volumetric tax applies beginning on the 30
first date of commencement of commercial operations of a major component of the 31
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project. 1
(b) The volumetric tax is $0.15 for each 1,000 cubic feet of natural gas 2
transported through a gas pipeline. 3
(c) Beginning the first year the tax applies to throughput of a gas pipeline, the 4
rate of tax for throughput under this subsection shall be adjusted on January 1 of each 5
year for inflation, using 100 percent of the change over the preceding five calendar 6
years in the Consumer Price Index for all urban consumers for urban Alaska, as 7
determined by the United States Department of Labor, Bureau of Labor Statistics. 8
(d) A natural gas project is subject to the alternative volumetric tax under this 9
section only if the department determines that the project is eligible under 10
AS 43.59.030. 11
(e) The tax levied under this section is in place of 12
(1) all state taxes levied on taxable property, including property used 13
or committed by contract or other agreement for use in the natural gas project; 14
(2) taxes levied under AS 43.56.010; and 15
(3) taxes levied under AS 29.45.080. 16
(f) Each owner of property subject to tax under this section shall file a return 17
with the department on or before the last day of each month. The return must state the 18
throughput, in cubic feet of natural gas for each day, for each property subject to tax 19
for the month preceding the month in which the return is due. The owner of the 20
property shall, at the time the return is filed, pay the tax due under this section for the 21
month preceding the return. 22
(g) A payment is considered late if the payment is not received by the 23
department on or before the last day of the month in which the return is due. 24
(h) Notwithstanding AS 43.05.220, if the tax levied in this section is 25
delinquent, the department shall assess a penalty of 15 percent of the amount of 26
delinquent taxes and interest on the delinquent taxes, exclusive of penalty, at the rate 27
specified in AS 43.05.225. 28
Sec. 43.59.030. Eligibility. (a) A natural gas project is eligible for the 29
alternative volumetric tax under AS 43.59.020 only if the department determines that 30
the plans for the project meet the requirements of this section. 31
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(b) To be eligible under this section, plans for the project must include a spur 1
line meeting the requirements of this subsection that serves the City of Fairbanks and 2
the Fairbanks North Star Borough. The spur line must 3
(1) have sufficient capacity to serve reasonably projected residential, 4
commercial, and industrial demand in the Interior area of the state; 5
(2) be scheduled to begin operations within two years after the 6
commencement of commercial operations of a major component of the natural gas 7
project; 8
(3) be designed to connect with local distribution infrastructure 9
capable of delivering natural gas to the City of Fairbanks and the surrounding urban 10
area; 11
(4) be designed and operated to deliver gas at the lowest reasonable 12
cost consistent with safe and reliable service; and 13
(5) allocate costs, including capital, financing, construction, 14
operations, and maintenance costs, 15
(A) across all consumers systemwide; costs related to 16
financing, construction, operations, or maintenance of the spur line may not be 17
allocated solely to the Interior area of the state; in this subparagraph, 18
"systemwide" means the area from the North Slope to the Southcentral regions 19
of the state; and 20
(B) justly, reasonably, and not unduly discriminatorily. 21
(c) If the department determines that the requirements of (b) of this section 22
have been met, the department shall issue a written determination that the natural gas 23
project is eligible for the alternative volumetric tax under AS 43.59.020. 24
Sec. 43.59.040. Allocation of alternative tax. (a) The department shall levy 25
and collect the alternative volumetric tax imposed by this chapter. 26
(b) The department shall separately account for the tax collected by the state 27
under AS 43.59.020. Each year, the legislature may appropriate 28
(1) 50 percent of the tax collected under AS 43.59.020(b) to the 29
portion of the state through which a gas pipeline runs, with appropriations 30
proportionately divided among the municipalities and unorganized borough through 31
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which the gas pipeline runs; to determine the proportional distribution under this 1
paragraph, the length of pipeline in a municipality is divided by the total length of the 2
pipeline; the state shall retain the portions of the tax for the proportion of the pipeline 3
in the unorganized borough that is also outside a municipality; and 4
(2) 50 percent of the tax collected under AS 43.59.020(b) to 5
municipalities, reserves, and communities in the unorganized borough, distributed on a 6
per capita basis. 7
Sec. 43.59.050. Administrative appeals; distraint of property. (a) A 8
decision by the department regarding the imposition or calculation of the tax levied 9
under AS 43.59.020 may be appealed to the department for an informal conference 10
under AS 43.05.240, and a final decision may be appealed to the office of 11
administrative hearings under AS 43.05.405. 12
(b) The remedy of distraint of property set out in AS 43.20.270 applies to the 13
tax levied in this section. However, only the property subject to tax under 14
AS 43.59.020 may be distrained. 15
Sec. 43.59.060. Termination of status. The alternative volumetric tax 16
applicable to a natural gas project under AS 43.59.020 terminates on January 1, 2032, 17
if commencement of construction of the first 730 miles of the gas pipeline has not 18
begun by that date. 19
Sec. 43.59.070. Regulations. The department shall adopt regulations under 20
AS 44.62 (Administrative Procedure Act) to implement this chapter, including 21
procedures for 22
(1) measuring throughput; 23
(2) throughput reporting; 24
(3) calculating the rolling average of throughput. 25
Sec. 43.59.100. Definitions. In this chapter, 26
(1) "commencement of commercial operations" means the first flow of 27
natural gas through a natural gas project that delivers a commercial supply of natural 28
gas to the Southcentral or Interior area of the state; 29
(2) "gas pipeline" 30
(A) means a main natural gas pipeline from the outlet flange of 31
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the gas treatment plant on the North Slope to the inlet flange of the liquefied 1
natural gas plant located in the Southcentral region of the state; 2
(B) does not include any gas lines downstream of any offtake 3
point between a gas treatment plant and a liquefied natural gas plant; 4
(3) "gas treatment plant" means a facility and the related activities 5
required to receive natural gas from a Prudhoe Bay unit gas transmission line, a Point 6
Thomson unit gas transmission line, or other facilities, to treat the natural gas to 7
pipeline specifications, to dispose of or deliver byproducts, to deliver liquid products 8
for further transportation, and to deliver treated natural gas for transportation through a 9
gas pipeline; 10
(4) "liquefied natural gas plant" means a facility for liquefying natural 11
gas and includes structures, equipment, underlying land rights, and other associated 12
systems, storage, and facilities for off-loading liquefied natural gas; 13
(5) "natural gas project" and "project" means a natural gas project that 14
includes, collectively, a Prudhoe Bay unit gas transmission line, a Point Thomson unit 15
gas transmission line, a gas pipeline, a gas treatment plant, a liquefied natural gas 16
plant, and a marine terminal; in this paragraph, 17
(A) "marine terminal" means a terminal and those facilities 18
required to receive liquefied natural gas from the boundary of the liquefied 19
natural gas plant for marine transportation, including auxiliary vessels used in 20
the operation of the terminal; 21
(B) "Point Thomson unit gas transmission line" means a natural 22
gas transmission line from the outlet flange of the Point Thomson unit 23
production facility to the inlet flange of the gas treatment plant; and 24
(C) "Prudhoe Bay unit gas transmission line" means a natural 25
gas transmission line from the outlet flange of the Prudhoe Bay unit central gas 26
facility to the inlet flange of the gas treatment plant; 27
(6) "spur line" 28
(A) means 29
(i) a natural gas transmission or lateral line that 30
branches from the main gas pipeline for the primary purpose of 31
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delivering natural gas to a local community or utility distribution 1
system; and 2
(ii) compressing and metering equipment and 3
interconnection facilities related to the transmission or lateral line 4
described in (A)(i) of this paragraph; 5
(B) does not include infrastructure used for the export of 6
natural gas or lateral lines not necessary for delivering natural gas to a local 7
community or utility distribution system; 8
(7) "throughput" 9
(A) means 10
(i) the volume of natural gas measured by summing all 11
volumes sold or otherwise delivered at each outlet or offtake point, as 12
along the gas pipeline, transported through a gas treatment plant or 13
carbon capture facility, or processed by a liquefied natural gas plant, as 14
applicable; and 15
(ii) natural gas consumed as fuel for the operation of a 16
liquefaction facility; 17
(B) does not include natural gas consumed as fuel for pipeline 18
compression. 19
* Sec. 17. AS 14.17.510(d), 14.17.990(6)(B); AS 29.45.050(aa), 29.45.085; AS 37.14.900; 20
AS 43.56.210(5)(B)(vi); AS 43.59.020, 43.59.030, 43.59.040, 43.59.050, 43.59.060, 21
43.59.070, and 43.59.100 are repealed. 22
* Sec. 18. AS 37.05.610 is repealed. 23
* Sec. 19. The uncodified law of the State of Alaska is amended by adding a new section to 24
read: 25
REQUIRED REPORT: PHASE TWO OF THE ALASKA LIQUEFIED NATURAL 26
GAS PROJECT. (a) Before a final investment decision is made on phase two of the Alaska 27
liquefied natural gas project, the Alaska Gasline Development Corporation shall deliver a 28
report to the senate secretary and the chief clerk of the house of representatives and shall 29
notify the legislature that the report is available. The report must include 30
(1) a discussion and review of the effects and effectiveness of this Act on the 31
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Alaska liquefied natural gas project; 1
(2) if applicable, suggestions for additional changes to law related to the 2
Alaska liquefied natural gas project, before implementation of phase two. 3
(b) In this section, 4
(1) "Alaska liquefied natural gas project" has the meaning given in 5
AS 31.25.390; 6
(2) "phase two" means a phase of the Alaska liquefied natural gas project that 7
includes a liquefied natural gas plant, as defined in AS 31.25.390, and other related 8
infrastructure required for the export of liquefied natural gas. 9
* Sec. 20. The uncodified law of the State of Alaska is amended by adding a new section to 10
read: 11
APPLICABILITY. The adjustment for inflation of the volumetric tax, required under 12
AS 43.59.020(c), added by sec. 16 of this Act, applies January 1 after the first full year of tax 13
under the rates set out in AS 43.59.020(b), added by sec. 16 of this Act. 14
* Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 15
read: 16
CONDITIONAL EFFECT: BILL; NOTIFICATION TO THE REVISOR OF 17
STATUTES. (a) Sections 1 - 5, 9, 11, 13, 15, 16, 19, and 20 of this Act take effect only if, 18
before July 1, 2056, the commissioner of revenue determines that 19
(1) each owner of property that could be taxable under AS 43.59.020, added 20
by sec. 16 of this Act, has committed to 21
(A) deposit $40,000,000 into a designated community impact fund 22
with the following conditions: 23
(i) the fund administrator shall pay an impacted municipality 24
from the fund 25 percent of the anticipated costs to the municipality related to 25
construction of the gas pipeline; 26
(ii) in addition to the payments under (i) of this subparagraph, 27
an impacted municipality may submit to the fund administrator additional 28
actual costs related to the effects of construction for reimbursement from the 29
fund; 30
(iii) the fund administrator shall pay reimbursements under (ii) 31
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of this subparagraph to impacted municipalities at least quarterly; 1
(iv) the fund shall be administered by the primary owner who 2
contributes to the fund; 3
(B) negotiate a project labor agreement for the construction of the gas 4
pipeline; in this subparagraph, "project labor agreement" means a comprehensive 5
collective bargaining agreement between the owner of the gas treatment plant, carbon 6
capture facility, liquefied natural gas plant, or gas pipeline and the appropriate labor 7
representatives to ensure expedited construction with labor stability by employing 8
qualified residents of the state; and 9
(2) each owner of property that could be taxable under AS 43.59.020, added 10
by sec. 16 of this Act, who would be responsible for constructing a spur line has committed to 11
construct the spur line; to meet the requirement of this paragraph, the owner shall 12
(A) on or before completion of construction of 730 miles of the gas 13
pipeline, timely and in good faith begin all necessary permit applications and take 14
action on any other regulatory requirements necessary for the construction of the spur 15
line, including, if the Regulatory Commission of Alaska has jurisdiction over the 16
tariffs, 17
(i) initiating a tariff proceeding; and 18
(ii) filing with the commission for systemwide tariff treatment 19
for the spur line; and 20
(B) begin construction on a spur line within one year after receiving all 21
permits and meeting the necessary regulatory requirements described in (A) of this 22
paragraph. 23
(b) If the commissioner of revenue determines that the conditions in (a) of this section 24
have been met, the commissioner of revenue shall notify the revisor of statutes in writing 25
within 30 days after making the determination. 26
(c) In this section, 27
(1) "gas pipeline" means a gas pipeline, as defined in AS 31.25.390, that is 28
expected to be subject to the alternative volumetric tax under AS 43.59.020, enacted by sec. 29
16 of this Act; 30
(2) "impacted municipality" means the North Slope Borough, Fairbanks North 31
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Star Borough, Denali Borough, Municipality of Anchorage, Matanuska-Susitna Borough, and 1
Kenai Peninsula Borough; 2
(3) "spur line" means a spur line, as defined in AS 43.59.100, enacted by sec. 3
16 of this Act, that serves the City of Fairbanks and the Fairbanks North Star Borough; 4
(4) "systemwide" has the meaning given in AS 43.59.030(b)(5)(A), enacted by 5
sec. 16 of this Act. 6
* Sec. 22. The uncodified law of the State of Alaska is amended by adding a new section to 7
read: 8
CONDITIONAL EFFECT: EDUCATION FUND. Section 6 of this Act takes effect 9
only if 10
(1) a constitutional amendment to art. IX, Constitution of the State of Alaska, 11
establishing an education fund and allowing the proceeds of a state tax or license to be 12
dedicated to and deposited into the fund by law is passed by the Thirty-Fourth Alaska State 13
Legislature and approved by the voters at the 2026 general election; and 14
(2) the conditions in sec. 21(a) of this Act are met. 15
* Sec. 23. The uncodified law of the State of Alaska is amended by adding a new section to 16
read: 17
CONDITIONAL EFFECT: TAX SUNSET. Sections 10, 12, 14, and 17 of this Act 18
take effect only if the conditions in sec. 21(a) of this Act are met. 19
* Sec. 24. Sections 7, 8, 18, and 21 - 23 of this Act take effect immediately under 20
AS 01.10.070(c). 21
* Sec. 25. If, under sec. 21 of this Act, secs. 1 - 5, 9, 11, 13, 15, 16, 19, and 20 of this Act 22
take effect, they take effect on the day after the date the commissioner of revenue determines 23
that the conditions in sec. 21(a) of this Act have been met. 24
* Sec. 26. If, under sec. 22 of this Act, sec. 6 of this Act takes effect, it takes effect on the 25
later of 26
(1) the day after the date the 2026 general election is certified; or 27
(2) the day after the date the commissioner of revenue determines that the 28
conditions in sec. 21(a) of this Act have been met. 29
* Sec. 27. If, under sec. 23 of this Act, secs. 10, 12, 14, and 17 of this Act take effect, they 30
take effect January 1, 2056. 31